Cash App Settles $15 Million Lawsuit Over Data Breaches What You Need to Know
cash app settlement class action lawsuit, Cash App and its parent company, Block Inc., agreed to a $15 million settlement over a class-action lawsuit stemming from major security breaches in 2021 and 2023. These breaches exposed the personal information of millions of Cash App users, including unauthorized access to their accounts and sensitive data.
What Happened with Cash App?
The lawsuit revolves around two major security incidents involving Cash App’s platform:
- December 2021 Breach: A former employee, after leaving Cash App, unlawfully downloaded sensitive customer reports containing personal data of 8.2 million users. Given that Cash App had 57 million users in 2024, this breach affected roughly 14% of its customers.
- October 2023 Breach: Another security lapse allowed unauthorized individuals to access user accounts and initiate fraudulent transactions.
Following these breaches, customers filed a lawsuit against Cash App, claiming the company failed to properly safeguard their data or prevent unauthorized access. Although Cash App and Block did not admit to wrongdoing, they agreed to the settlement to resolve the issue quickly.
How Much Could Affected Users Receive?
The settlement covers Cash App users who had accounts between August 23, 2018, and August 20, 2024, and were impacted by the breaches. Eligible users could file claims for compensation, which could total up to $2,500 for financial losses or up to $75 for lost time due to the breaches.
Unfortunately, the deadline to submit claims for this settlement was November 18, 2024.
Who Was Eligible to File a Claim?
Anyone who had a Cash App or Cash App Investing account during the covered period and whose personal information was accessed or compromised could have filed a claim. This includes those affected by fraudulent withdrawals, unauthorized transfers, or other breaches of their accounts.
A Call for Better Cybersecurity
While the case highlights serious concerns about cybersecurity, it also reflects the growing importance of securing personal data, especially with the rise of digital financial services. Even major platforms like Cash App and Block are not immune to data breaches, signaling the ongoing need for enhanced security measures.
For users who missed the filing deadline or who wished to opt out of the settlement, a written notice had to be submitted to the Settlement Administrator by November 18, 2024.
The Final Approval Hearing for the settlement is scheduled for January 13, 2025, where the court will review the case and approve any associated costs or additional actions.
This settlement serves as a reminder of the vulnerabilities in the digital finance world and the critical importance of safeguarding sensitive personal data in today’s interconnected world.
